Strong baht takes a toll on Thai tapioca export revenue

[rooster59]

Strong baht takes a toll on Thai tapioca export revenue

By The Nation

 

Credit:North Eastern Tapioca Trade Association

 

Farm products have a bright future in the Chinese market but the strong baht is leading to huge revenue losses, tapioca exporters said.

 

 

“The appreciation of the baht against the US dollar and the Chinese yuan has hit our revenue by up to Bt10 billion,” said Somboon Wattanavanichkul, president of the North Eastern Tapioca Trade Association.

 

Exporters want the baht in the range of Bt32 to the dollar in order to ensure price competitiveness of farm products in export markets, he said.

 

The baht currently trades at around Bt30 to the dollar, a five per cent appreciation since January this year. If the US Federal Reserve cuts its policy rate again, that would further strengthen the baht hence Thai authorities should look at the exchange rate market, he said. Thai exporters and their Chinese counterparts recently signed a memorandum of understanding (MoU) to trade 2.68 million tonnes of tapioca products -- chips and starch -- valued at $608 million (Bt18.464 billion). 

 

The MoU signing took place last week during the visit of a Thai delegation to China led by Commerce Minister Jurin Laksanawisit in a bid to export more farm products to China.

 

Chinese traders will import this batch of tapioca chips and starch between October this year and October next year.

 

Boonchai Srichaiyongpanich, president of the Thai Tapioca Trade Association, said that export demand is higher than Thailand’s tapioca production cane meet, leading to the rising price of cassava roots. The fresh root now sells at between Bt2.10 to Bt2.40 per kilogram.

 

Currently, Thailand has the capacity to produce about 30 million tonnes of tapioca. He said that production capacity should increase to 40 million tonnes to meet high export demand. Thailand could increase cassava root yields from 3.6 tonnes per rai to 5 tonnes per rai, he suggested. Total land area for plantation of tapioca in Thailand is estimated at 8 million rai

 

From January to July, Thai traders exported 4.5 million tonnes of tapioca products value at $1.69 billion, down 11.63 per cent and 6.88 per cent respectively year on year. However, the Chinese export market remains promising as China is expected to import more cassava products to produce ethanol and feed meal, according to Thai exporters.

 

Source: https://www.nationthailand.com/business/30376801

 

-- © Copyright The Nation Thailand 2019-09-28

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[mercman24]

the price of raw rubber down the drain, then it was the rice now its the tapioca, but do the rich care,? or those in authority,? not one iota.

[roquefort]

6 hours ago, mercman24 said:

the price of raw rubber down the drain, then it was the rice now its the tapioca, but do the rich care,? or those in authority,? not one iota.

It's called a market. Prices go up or down according to supply and demand. Economics 101.

[Magenta408]

You can buy more military hardware with a stronger Baht. Be damned for the rest. 

[soalbundy]

Oh no !  not the tapioca.

[sawadeeken]

Thank you Mr. Prayut and Prawit........  Now the present day government doesen't care about anyone in Thailand unless you are Army Generals or 'HiSo' (Rich Thai's)..... This is a perfect example of the consideration this Gov't has for the poor (mostly farmers)..... and now they are buying attack helicopters.......

It is my opinion (and that of many of my friends) that much of this 'armour' is to be used against 'Any Thai Protesters', Including those 'Armoured Personell Carriers' to 'quiet and dispell' any demonstrators, Protesting his regime (His Police State)......... All we can do is 'wait and see'......

And just a question relative to Gov't spending of this inflated baht (Which I may never be priveliged to know).... On Prayut's current trip to New York I wonder how much Thai Baht was spent 'liberally' on his comforts on this trip?????????  Private chartered Thai-Airways Flight?????  How many 'Inflated Thai Baht' ??????